At the end of last week price cut through the Cloud easier than expected but
has since came back to retest the lower band of the Cloud.
Yesterday on the hourly chart, there was a nice pinbar, piercing the
HMA200/lower Cloud/Weekly R1, which was a perfect place to enter
long. Since price is till inside the Cloud, I have removed the risk (in my trade)
awaiting the Daily close above the Cloud, for a proper signal.
IF price fails to close above, we might see further consolidation inside
the Cloud, which could mean that price crawls lower. The Dollar Index
on Daily tf is also facing support (Cloud Wall). Sometimes if the
Cloud Wall is too vertical, it fails to support, in my experience, and other
times it will give a strong bounce.
A close below the Cloud may twist the Cloud back to bearish, which may
make the MACD roll over with more downside action or consolidation to follow.
has since came back to retest the lower band of the Cloud.
Yesterday on the hourly chart, there was a nice pinbar, piercing the
HMA200/lower Cloud/Weekly R1, which was a perfect place to enter
long. Since price is till inside the Cloud, I have removed the risk (in my trade)
awaiting the Daily close above the Cloud, for a proper signal.
IF price fails to close above, we might see further consolidation inside
the Cloud, which could mean that price crawls lower. The Dollar Index
on Daily tf is also facing support (Cloud Wall). Sometimes if the
Cloud Wall is too vertical, it fails to support, in my experience, and other
times it will give a strong bounce.
A close below the Cloud may twist the Cloud back to bearish, which may
make the MACD roll over with more downside action or consolidation to follow.